Powering Healthcare – Nigeria Market Assessment and Roadmap

The report finds that Nigeria's health sector is severely underfunded, with the health budget averaging 5% of the national budget, far below the 15% Abuja declaration. Consequently, over 75% of health spending is borne by households through out-of-pocket expenses. Primary healthcare facilities (PHCs) often rely on user fees to cover operational costs, including electricity from the grid and fuel generators, which cost an average of ₦23,500 to ₦48,000 per month. To achieve the NPHCDA target of 10,000 electrified PHCs, the report estimates a total requirement of $525 million, split between short-term needs ($180 million for 3,433 facilities) and medium-term needs ($345 million for 6,567 facilities). The document recommends a blended financing approach combining government funds like the Basic Healthcare Provision Fund (BHCPF), donor grants, and private sector debt and equity to mitigate risks for energy service companies.

• Nigeria's public health funding is significantly below international commitments and regional averages. The national health budget averages 5% of the total budget, failing to meet the 15% target set by the Abuja declaration. Total government health expenditure amounted to ₦588 billion (~US$2.2 billion), which is barely 1% of GDP, resulting in a per capita spend of $11, compared to $57 in Sub-Saharan Africa (SSA).
• A vast majority of health spending in Nigeria is borne by individuals. Out-of-pocket expenditure accounts for more than 75.2% of total health expenditure, as public budgets are sub-optimal.
• Primary healthcare (PHC) facilities suffer from severe operational funding shortages and rely heavily on user fees. While 35% of current health expenditure is spent on PHC, the per capita expenditure is only ~₦7,300 (~20 USD). Many facilities charge user fees for drugs and services to cover operational expenses, including power utilities.
• PHCs incur significant monthly costs for energy from the grid and fuel generators. On average, PHCs spend between ₦23,500 and ₦48,000 ($47 - $96) per month on electricity and fuel, often funded through internal revenue charged to patients.
• The financial requirement to electrify functional PHCs in Nigeria is estimated at $525 million to meet the NPHCDA target of 10,000 facilities. This is divided into a short-term requirement of $180 million for 3,433 facilities (17.2MW) and a medium-term requirement of $345 million for 6,567 facilities (32.8MW).
• The Basic Healthcare Provision Fund (BHCPF) offers a potential but currently insufficient source of funding for energy operations. It provides roughly ₦100,000 ($243) a month to some facilities in seven states, with operational costs (OpEx) averaging ₦1.2m ($2,400) per annum, which may partially cover monthly operation and maintenance (O&M) costs for the private sector.
• Private sector financing for off-grid energy has shifted toward debt, but commercial viability for health facility electrification remains low due to high non-repayment risks and market failures. Investors emphasize the need for blended finance, including government subsidies, guarantees, and concessional funding to make projects viable.

APA

Sustainable Energy for All (n.d.). Powering Healthcare – Nigeria Market Assessment and Roadmap. https://www.seforall.org/system/files/2022-06/Nigeria_funding_and_financing_0.pdf

Chicago

Sustainable Energy for All. Powering Healthcare – Nigeria Market Assessment and Roadmap. n.d. https://www.seforall.org/system/files/2022-06/Nigeria_funding_and_financing_0.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=Powering Healthcare – Nigeria Market Assessment and Roadmap |url=https://www.seforall.org/system/files/2022-06/Nigeria_funding_and_financing_0.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforallndpowering, author = {{Sustainable Energy for All}}, title = {{Powering Healthcare – Nigeria Market Assessment and Roadmap}}, institution = {Sustainable Energy for All}, url = {https://www.seforall.org/system/files/2022-06/Nigeria_funding_and_financing_0.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }